Three Turkish banks have applied to the Competition Authority (RK) to take over the majority of shares in Turk Telekom due to unpaid debts by its parent company Saudi Oger. The application for the takeover through a special-purpose entity was made public by the RK on its website, Reuters reports. Turk Telekom said in a statement that it had received no information on the acquisition.
Oger Telecommunications, owned by Lebanon's Hariri family, had used a 55 percent stake in Turk Telekom as a guarantee for a loan of USD 4.75 billion taken out in 2013. However, it failed to repay its installments. As a result, Akbank, Garanti Bank and Is Bank, the three biggest private banks in the country, are seeking the shares in compensation. BNP Paribas and Deutsche Bank have also extended loans to Oger Telecom.
In addition to the 55 percent share owned by Oger, the Turkish Treasury has a 25 percent stake in Turk Telekom, while a 5 percent stake is owned by the country's Sovereign Wealth Fund and 15 percent is traded on the stock market.
